Tuesday, October 20, 2020
No menu items!

Apple’s stock market value tops $2 trillion

Just two years after Apple became the first publicly listed U.S. company with a $1 trillion stock market value, the iPhone maker has now topped $2 trillion.

The Cupertino, California-based company’s shares briefly rose as to as high as $468.65 on Wednesday (August 19), equivalent to a market capitalization of $2.004 trillion. The stock was last up 1% at $466.89, giving Apple a market capitalization of $1.996 trillion.

Buoyed by bets on the long-term success of the country’s biggest tech names in a post-coronavirus world, Apple’s shares have surged since blowout quarterly results in July that saw the iPhone maker eclipse Saudi Aramco as the world’s most valuable listed company, and Apple’s stock is up about 57% so far in 2020.

The rally reflects growing investor confidence in Apple’s shift towards relying less on sales of iPhones and more on services for its users.

However, Apple’s recent stock rally has left it potentially overvalued, according to a widely used metric. The stock is trading at over 30 times analysts’ expected earnings, its highest level in more than a decade, according to Refinitiv.

Microsoft and Amazon follow Apple as the most valuable publicly-traded U.S. companies, each at about $1.6 trillion. They are followed by Google-owner Alphabet, at just over $1 trillion.

Those and other heavyweight technology companies have surged to record highs during the coronavirus pandemic as consumers rely more on ecommerce, video streaming and other services they provide. Investors are betting these companies will emerge from the pandemic stronger than smaller competitors, with some even viewing their volatile shares as safe havens.

Apple’s revenue grew across every category and all of its geographical regions in the June quarter, even as the coronavirus crisis caused the U.S. economy to collapse at its worst rate since the Great Depression.

Apple surprised Wall Street as it was able to get loyal shoppers to buy iPhones, iPads and Macs online even as several brick-and-mortar stores remained closed due to the coronavirus lockdowns.

Started in the garage of co-founder Steve Jobs in 1976, Apple has pushed its revenue beyond the economic outputs of Portugal, Peru and other countries.

Current Chief Executive Officer Tim Cook took over from Jobs in August, 2011 and has more than doubled Apple’s revenue and profits under his leadership.

The iPhone maker is slated to split its stock four-to-one when trading opens on Aug. 31, with the company saying it aims to make its shares more accessible to individual investors.

(Production: Roselle Chen)

Latest News

Kamala Harris tells Florida voters ‘You will make it happen’ to honks of approval

Early voting began on Monday (October 19) in Florida, a battleground state that could decide the Nov....

Brad Pitt’s ‘Fight Club’ jacket, ‘Pretty Woman’ boots up for sale in memorabilia auction

 Fans of some of the biggest blockbusters from the past decades will soon be able to recreate their favourite scenes at home...

Dodgers ready for World Series after fighting off elimination 3 times in the NLCS

The Los Angeles Dodgers head into this year's World Series looking to end an agonizing 32-year wait for a championship following a...

Trump on Biden: “The FBI should be investigating him”

President Donald Trump, running out of time to change the dynamics of a race that he appears to be losing, on Monday...

Houston Teen Launches Mobile Covid-19 Testing Lab

HOUSTON, TX - Since the beginning of the pandemic, waiting in long lines for a COVID-19 test has been a major...

More Articles Like This